Pedal To The Metal On The Highway To Hell

This structure of incentives would likely discourage many parents from earning a better life for their children. Congress could tweak the subsidies so they don’t phase out so quickly, but then we’re back to very high fiscal costs and subsidies for many families in the higher income classes.

Defenders of a broad health insurance mandate argue that it will lower average costs in the health care market. The claim is that many of the uninsured are young, healthy or both, and that bringing them into the insurance pool might lower average premiums by spreading risk across low-cost groups. Yet Massachusetts has had a health insurance mandate for several years and this cost-saving mechanism does not appear to be kicking in.

At this point, it seems more plausible that the cost of health insurance will keep rising, just as the costs of health care services have continued to climb. The upshot is that the burdens of mandatory purchase, the subsidy costs and the associated implicit marginal tax rates will all increase, eventually to the point of unsustainability.

Which is what a lot of us have been pointing out for a while. The “reforms” do nothing – at all – to contain costs and in fact will cause them to rise rapidly. Go over and read all of Cowen’s op-ed. It is important.

Workers will get the shaft here as costs skyrocket. Lower wages will result, higher employee contributions for health care will result. Call it whatever you want, but that looks like a tax increase. More and more taken from you and spent on government mandates.

3 Responses to Pedal To The Metal On The Highway To Hell

Obama’s health care reform isn’t reform at all, it’s a cynical continuation of Leftist policies designed to overwhelm the US economy with expensive entitlements designed to bankrupt the treasury and ultimately to destroy capitalism. Health care is simply another nail in Uncle Sam’s coffin.

TARP, Stimulus, and Cap and Trade, are only the most recent examples of similar programs. They never accomplish the stated goals, but that’s not why they exist. They’re designed to spend vast amounts of taxpayer money, undermine the public trust in representative government, and pave they way for Marxism.